The scheme is intended for promoting value addition and primary processing ventures in the agriculture sector with a purpose of providing necessary forward and backward linkages along with handholding of entrepreneurs.
Primary processing: Fruits and vegetables can be consumed in its raw form without undergoing processing or conversion. Fresh-cut fruits and vegetables (FFV) are products that have been cleaned, peeled, sliced, cubed or prepared for convenience or ready-to-eat consumption but remains in a living and respiring physiological condition.
FFV face the challenge of quality retention and shelf life preservation mostly during transportation and handling, automation so as to have competitive cost. Loss of vitamins and other nutrients has been reported during processing and storage of FFV, hence the need for appropriate processing techniques to retain their nutritional and organoleptic properties. Units engaged in primary processing, sorting, washing, grading, packing, minimal processing, modified atmospheric packaging etc using modern innovative scientific technologies and branded packaging using modern machinery will be supported under this scheme. As a part of this scheme enriching the nutritional mix for health and wellness by encouraging ready to cook and ready to eat farm to fork supply chain of agricultural and horticultural commodities -high value vegetables, sprouts, micro greens/nutri greens ,processed fruits and vegetables to be encouraged. For Kerala brand of food products visibility and acceptance in national and international markets to be ensured which will increase employment opportunity by creating off farm jobs and ensure remunerative prices for farm produce and generate higher income for farmers. Creation of Integrated Post Harvest Management infrastructure for primary processing and value addition is to be encouraged with appropriate technology adoption to ensure final products and nutritional security.
Value addition refers to the techniques applied to agricultural produce after harvest for its protection, conservation, processing, packaging, distribution, marketing, and utilization, to meet the food and nutritional requirements of the people in relation to their needs. The purpose of value addition is to maintain or enhance quality of the products and make it readily marketable. Proper methods of processing, storage, packaging, transport and marketing are required for export of various horticultural crops.
PATTERN OF ASSISTANCE
The assistance will be provided as credit linked back ended subsidy as per the following details:
| Category of Units | Definition of unit | Pattern of assistance |
| Micro level | Units with capital investment starting from 10 Lakhs but below Rs. 25 lakhs | 50% of investment in building and machinery including effluent treatment plant, office equipment etc limited to Rs. 10.00 lakhs |
| Small | Units with capital investment from 25 lakhs to 1 crore | 40% of investment in building and machinery including effluent treatment plant, office equipment etc limited to Rs. 25.00 lakhs |
| Medium | Units with capital investment from 1 crore to 5 crores | 30% of capital investment as per guidelines subject to a maximum of Rs. 50 lakhs |
